Registered agreement

Hi. We have purchased a 3BHK flat in mumbai. The docs of the flat are mortgage with a bank. The owner of the flat was behind the bars as there was the case against him by Economic offence wing. This property was supposed to be auctioned but as we agreed for the deal the auction was cancelled. We and the owner signed a MOU in the court saying we are paying 10lacs as advance and getting a single key possession. When we applied for loan we got sanctions from couple of bank for 2Cr. But in their search it was found that it is also registered in somebodies name last year.
Court had issued a decree that this flat has to be sold and the bankers will get the amount.the other agreement was not in knowledge of anyone unless our financers searched it. We also payed stamp duty and registered agreement for 2.3Cr. The other agreement is mentioned in our registered agreement in the chain of registration of agreements.Financers need cancel deed of this agreement which the owner is not providing.
We had to make payment in 60days as mentioned in agreement which expires tomorrow but proper docs not yet recd. from owner.
Bankers are saying they will go for auction and owner is saying if we dont pay by tomorrow the other person( whose cancel deed was required ) is now willing to pay.
Please guide.
I hope iam clear and not confusing in terminology...

Asked 1 year ago in Property Law from Mumbai, Maharashtra

Religion: Hindu

1) it is necessary to peruse various documents cited by you to advice .
2) from limited facts mentioned by you title to property is not clear and marketable .
3) you should not have paid stamp duty and entered into regd sale deed when title is not clear and marketable .
4) have the papers produced and inform the court that you are willing to deposit balance amount in court if owner clears defect in title
5) if you are in position to obtain refund of money paid by you cancel the deal and seek refund

Also, when we approached the bankers with whom the flat is mortgage they made us pay 10lacs saying its security that we wont backoff with the deal and they will divert the funds when we pay the cheque of advance. but later they refused saying they will adjust it in next payment. Now they are saying that we have to pay 13.5% interest on 2.3 since the date we agreed to the deal. and that they will cut the amount in interest.But all the complecations arroused only later and our sanction letters are ready since long . Actually we have purchased from the owner not the bank and the delay is only due to non cooperation of owner. And is bank really not in fault they blocked us for the property which tittle is not clear. Do we really have to pay the panalty for banks and owners mischief??
pls guide

Asked 1 year ago

1) it is necessary top peruse agreement signed by you with owner
2) if title to property is not clear and marketable owner will have to refund your Rs 10 lakhs paid as advance
3) if bank has sanctioned loan they will charge you interest if you fail to utilise the funds and loan is not disbursed on account of your failure to meet the requirements laid down in loan agreement signed with bank

There appears to be some gross fraudulent transactions in respect of this property by the owner in the past. May be this fraudulent act also be one of the reasons for his punishment in the economics offences act. It is not appearing to be a genuine deal. You may consult a local experienced advocate, take his opinion by showing the relevant documents and proceed if it's worth enough or you ca cancel the agreement.

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